MIE 201 Chapter 1 - Chapter 4 Test

Which one of the following approaches is helpful in resolving the CSR dilemma? -minimalist approach -cynical approach because it is straightforward and effective -companies must take responsibility for the consequences of their actions and limit the negative influence of their operations, thereafter making right choices irrespective of pressure -defensive approach -proactive approach because company leaders believe they have responsibilities beyond making a profit

companies must take responsibility for the consequences of their actions and limit the negative influence of their operations, thereafter making right choices irrespective of pressure

An embargo is a ______. -quantity restriction on the import of particular goods or services -surcharge imposed on import of certain products -subsidy offered to products exported from a country -form of financial assistance extended to domestic producers -compete ban on the import or export of certain products

compete ban on the import or export of certain products

The _____ measures the rate of inflation by comparing changes in the prices of a representative basket of goods and services such as clothing, food, housing and utilities. -gross domestic product (GDP) -producer price index (PPI) -inflationary stability index (ISI) -consumer price index (CPI) -economic stimulus index (ESI)

consumer price index

The powerful effects of scarcity can be described by all of the following statements EXCEPT which one? -consumers have control over the market -businesses are constantly forced to make trade-offs -people and organizations compete for the resources they need -governments are constantly forced to make trade-offs -businesses and industries compete with each other

consumers have control over the market

The idea that a business has obligations to society beyond the pursuit of profits is ______. -utilitarianism -opportunistic responsibility -philanthropic sustainability -corporate social responsibility -ethical minimization

corporate social responsibility

Which of the following is a major disadvantage of customizing products to suit local markets? -customized products attract more taxes and duties -customers' preferences will likely be ignored when using customization -customization prevents companies from obtaining subsidies -it reduces the diversity of a company's offerings -customization is likely to increase the costs and operational complexity

customization is likely to increase the costs and operational complexity

A store was accused of using sweatshop labor and was labeled as promoting unethical business policies. To deal with these criticisms, the company decides to make a large donation to a cancer research foundation. This store would be said to have a ______ approach to CSR. -proactive -defensive -philanthropic -minimalist -strategic

defensive

A(n) _____ is a graph showing the relationship between the amount of product that buyers will purchase at various prices, all other factors being equal. -supply curve -demand curve -inflation rate -competitive balance -deflation rate

demand curve

Because they fundamentally change the nature of an industry, ______ can be powerful enough to create or destroy entire companies. -incremental technologies -adaptive technologies -innovative technologies -apocryphal technologies -disruptive technologies

disruptive technologies

In order to understand opportunities and real solutions to environmental issues, all of the following aspects except ONE should be taken into consideration. -most environmental issues are neither simple nor easy -the creation, delivery, use and disposal of products that society values generate pollution -the creation, delivery, use and disposal of products that society values virtually consume natural resources -environmentalists are "tree huggers" who care more about bunnies and butterflies than about jobs and human concerns -environmentalists issues are often related to human health and safety

environmentalists are "tree huggers" who care more about bunnies and butterflies than about jobs and human concerns

Multinational corporations are companies that ______. -procure supplies from multiple countries to improve their production -have formed operational alliances with companies across the world -establish a physical presence in multiple countries through FDI -have formed strategic alliances with companies across the world -export to multiple countries from a central location

establish a physical presence in multiple countries through FDI

Business contribute to society in many useful ways, including all of the following EXCEPT which one? -contributing to national stability and security -financial instability -offering valuable goods and services -providing employment -paying taxes

financial instability

Most of the electricity generated in the US is produced by ______. -wind power -fossil fuels -hydroelectric power -solar power -nuclear power

fossil fuels

Merges and acquisitions are approved by governments in order to ______. -encourage innovation and economic development -protect stakeholders -reduce unemployment -foster competition -stabilize and stimulate the economy

foster competition

A ______ is an economic system in which individuals and companies are largely free to decide what products to produce, how to produce them, whom to sell them to, and at what price to sell them. -socialist economy -regulated economy -planned system -free market system -communist economy

free market system

Which one of the following examples is NOT correct in distinguishing philanthropy from SCR? -strategic SCR is addressing social concerns while giving business a competitive advantage -generic philanthropy is a company helping develop the workforce by supporting job training efforts -philanthropy is a company supporting the arts in its hometown to enrich cultural richness -social responsibility is a company investing in "assistive technology" -philanthropy is a company using its facilities to organize a charity event

generic philanthropy is a company helping develop the workforce by supporting job training efforts

Which of the following refers to people and their individual talents and capacities? -entrepreneurship -human resources -knowledge -natural resources -capital investments

human resources

According to the U.S. Foreign Corrupt Practices Act (FCPA), all of the following practices are outlawed EXCEPT _____. -outright cash payments -payments with the intent of getting government officials to break the country's laws -securing "improper advantage" in gaining or retaining sales -payments to expedite routine actions -indirect means of influence

payments to expedite routine actions

In a _____ system, governments largely control the allocation of resources and limit freedom of choice. -capitalistic -private enterprise -planned -free market -privatization

planned

Movement along the supply curve typically slopes upward because _____. -the quantity that the sellers are willing to supply rises with increase in price -the amount of govt regulation in an industry rises with increase in demand -the amount of govt regulation in an industry rises with increase in price -the quantity that sellers are willing to supply rises with decrease in demand -the quantity that sellers are willing to supply rises with increase in government regulation

the quantity that the sellers are willing to supply rises with increase in price

In a free market economy, companies generally have limited autonomy in deciding which customers that want to focus on and how they want to compete. True or False

False

Making a morally wrong decision is not the same thing as an ethical lapse. True or False

False

When someone uses the justice approach as a way to resolve an ethical dilemma, he or she seeks the greatest good for the most people. True or False

False

Whistle-blowing is illegal. True or False

False

A deep and prolonged recession can be considered as a depression. True or False

True

Business and society are mutually dependent; therefore, choices that weaken one or the other will ultimately weaken both. True or False

True

Companies that sell shares of stock to the public are required to have their financial records audited by an outside accounting firm. True or False

True

Economic development zones, established by governments, offer a variety of financial incentives to businesses that meet specific job creation and local investment criteria. True of False

True

In practice, no economy is truly a free-market economy. True of False

True

The situation in which one supplier thoroughly dominated a market and essentially shuts out other competitors is called a monopoly. True or False

True

A country that imports more than it exports would have a trade surplus. True or False

False

Capital is the collective intelligence of an organization. True or False

False

Companies that engage in cynical CSR believe that the only social responsibility of a business is to pay taxes and obey the law. True or False

False

Culture is not a determinant of ethical behavior. True or False

False

Cyclical unemployment is caused by a mismatch between workers' skills and current employer needs. True or False

False

Etiquette is the quality of performing your job to the best of your ability and conducting yourself with purpose and pride. True or False

False

The classic theory of comparative advantage supports which reason for countries and companies to trade internationally? -Pursuing economies of scale -Acquiring materials, goods, and services -Keeping up with customers -Focusing on relative strengths -Expanding markets

Focusing on relative strengths

While gross domestic product (GDP) considers where the production occurs, _____ considers who is responsible for the production. -Gross National Product (GNP) -Producer Price Index (PPI) -Economic Stability Index (ESI) -Consumer Price Index (CPI) -Human Development Index (HDI)

Gross National Product (GNP)

Which one of the following statements does NOT reflect the true understanding of demand and supply relationship? -If demand weakens, the businesses can keep the prices consistent. -Yield management can be used to adjust prices. - A demand curve shows the relationship between demand and supply. -Demand at all price points can increase or decrease. -When demand curves slope downward, the implications is that, as prices drop, more people will be willing to buy.

If demand weakens, the businesses can keep the prices consistent.

________ encompasses all the people and processes used to create the goods and perform the services that a company sells. -information technology management -financial management -sales and marketing -human resources management -operations management

Operations management

Macroeconomics is the study of ______. -small scale perspective of economic behavior among consumers and businesses -how a society uses its scarce resources to produce and distribute goods and services -the effect of government policies and how an economy allocates its scarce resources -the economic behavior among consumers, business and industries that collectively determine the quantity of goods and services demanded and supplied at different prices -a country's larger economic issues, such as how firms compete, the effect of government policies and how an economy maintains and allocates its scarce resources

a country's larger economic issues, such as how firms compete, the effect of government policies and how an economy maintains and allocates its scarce resources

Activities undertaken by businesses to recruit and promote members of groups whose economic progress had been hindered through either legal barriers or established practices are known as ______. -selective recruiting -multiculturalism -affirmative action -sustainable development -greenwashing

affirmative action

Which one of the following statements is NOT accurate pertaining to the responsibilities of business toward their employees? -OSHA has standards that govern everything from hazardous materials to ergonomics -affirmative action program guaranteed equal opportunities in housing, transportation, education, employment and other areas for people in the US with disabilities -the ADA guarantees equal opportunities to people in the US with disabilities -disability is a term that refers to physical handicaps as well as cancer, disease, drug addiction, emotional illness and others -EEOC monitors hiring practices and investigates complaints of job-related discrimination

affirmative action program guaranteed equal opportunities in housing, transportation, education, employment and other areas for people in the US with disabilities

A management accountant is likely to be responsible for which of the following activities? -removing a distributor from the supply chain -determining the money allocated for marketing -assessing the manufacturing costs of new products -purchasing raw material for production -determining the prices of products

assessing the manufacturing costs of new products

The Magnuson-Moss Warranty Act (1975) requires complete written warranties in ordinary language and requires warranties to be ______. -supported by the manufacturer -applicable for minimum one year -available before purchase -supported by the retailer -contained on package labeling

available before purchase

The EU has created its own currency, the euro, that has been adopted by more than half of the member states of the EU. By switching to a common currency, member countries benefitted due to all of the following reasons EXCEPT _______. -the euro simplified commerce for consumers and businesses -the financial transactions became simpler and less expensive -the euro gave the EU a stronger presence in global financial markets -by having a common currency euro, it helped member countries in reducing transparency in pricing -by switching currency to the euro it helped member countries in lowering inflation and interest rates

by having a common currency euro, it helped member countries in reducing transparency in pricing

Unlike general philanthropy, strategic CSR ______. -refers to CSR activities that are mandatory according to law -promotes an antagonistic business-versus-society mindset -is more likely to be sustained over time -is aimed at specific sections of the society that have been historically discriminated against -leads to weakening of both the business and the society

is more likely to be sustained over time

A pharmaceutical company does not inform the public about probable side effects. The company ______. -had a utilitarian approach -failed to take affirmative action -had a consumerist approach -was involved in insider trading -lacked transparency

lacked transparency

_______ agreements entitle one company to use some or all of another firm's intellectual property in exchange for a royalty payment. - licensing -exporting -strategic alliance -joint venture -franchising

licensing

Purchasing, logistics and facilities management functions in a company are grouped under the _____ area of a company. -finance and accounting -human resources -marketing, sales, distribution and customer support -research and development -manufacturing, production and operations

manufacturing, production and operations

If consumer demand for a product decreases, the demand curve ______. -moves to the left -moves downward -remains stationary -moves upward -moves to the right

moves to the left

In a regulated monopoly, ______. -suppliers can charge as much as they want, at least until people stop buying -individual firms can have considerable control over pricing -firms that excel in one or more aspects can gain some control over pricing -no single firm can grow large enough to influence prices across the market -prices are set by government mandate

prices are set by government mandate

In the _____ approach to CSR, company leaders believe they have responsibilities beyond making a profit, and they back their beliefs and proclamations with actions taken on their own initiative. -defensive -cynical -minimalist -greenwash -proactive

proactive

Limiting the amount of particular goods that countries allow to be imported during a given year is known as ______. -tariffs -embargoes -dumping -sanctions -quotas

quotas

Trading blocs are ______. -financial intermediaries that facilitate international transactions -regional organizations the promote protections principles -regional organizations that promote trade among member nations -international organizations that provide funds to developing nations -international organizations that provide funds to advanced countries

regional organizations that promote trade among member nations

Lisa has a small language training business. She provides French and Spanish lessons to several customers in the neighborhood. What type of business does she have? -service business -goods producing business -merchandising business -manufacturing business -not for profit organization

service business

Population trends that change the composition of consumer markets and the workforce are a part of a company's ______ environment. -cultural -economic -regulatory -political -social

social

_______ lies somewhere between capitalism and communism. -nationalizing -mixed economy -privatization -socialism -mixed capitalism

socialism

The ______ to resolving ethical dilemmas involves choosing the option that delivers the most good for the most people. -justice approach -common good approach -individual rights approach -individual responsibilities approach -utilitarian approach

utilitarian approach